chapter 9 Flashcards
what is internal trade?
when buying and selling of goods takes place within the geographical limits of a country. It is known as internal trade.
main features of internal trade
- buying and selling of goods and services takes place within a country.
- the payments are made and received in the home country only
- there are no or very few formality to be completed by traders
- various local modes of transport can be used for transfer of goods and services
two types of internal trade
- wholesaler
- retailer
wholesale trader
wholesaler trade refers to the trade in which goods are sold in large quantities
features of wholesale trader
1.act as a link between producer and seller
2. deals with large quantities of goods
3. generally specialised in one line of product
4. large investment
5. sells goods in small lots to retailers
6. margin of profit is low
7. first intermediary in the distributionvhain
services to manufactures by wholesaler
- facilitate large scale of buying nd economics of scale
- helps in marketing functions
- expert advice
- storage
- financial assistance
- bearing risks
- facilitate production continuity
services to retailers by wholesaler
- availability of goods
- grant of credit
- risk sharing
- specialised knowledge
- publicity
- marketing support
- economics of scale
retail trade
retail trade is the last link in the distribution chain.
features of retail trade
- last link in the distribution chain
- sells the goods or services directly to consumers
- deals with a variety of products
- buys and sells a small quantity of goods
- generally located in residential areas
- maintains personal relation with customers
- act as middle man between wholesaler and customers
services to consumer by retailer
- regular availability of products
- wide selection
- new products information
- demonstration and after sale services
- home delivery
- convince in buying
- credit facility
services to wholesaler and manufacture by retailer
- helps in distribution of goods
- personal selling
- enabling large scale production
- helpful in promotion
- collecting market information
factors affecting classification of retailers
1.size
2.product mix
3.pricing
4.service level
5. form of owenership
two types of retailer
- Itinerant retailers
- fixed shop retailer
what is itinerants retailer?
Itinerants refers to retailers who have no fixed place of sale.
types of itinerants retailer
- hawkers and pedlars
- periodic market traders
- street trader
- cheap jacks
what are hawkers and pedlars?
Hawkers and pedlars move from street to street in search of customers.
main features of hawkers and pedlars
- move from street to street in search of customers
- sell a variety of goods
- deal with non-branded and local item
4.supply goods at the doorstep of the customers - no fixed price
Periodic market traders
These traders sell their goods on fixed days in different market places.
main features of Periodic market traders
- sell their goods in the weekly markets or monthly bazaars or annual fairs.
- display their goods on temporary structures made outside the shops
- sell low price and low quality goods
- also set up shops on special occasions
street traders
these retailers displays their articles on busy street corner, pavements and etc.
main features of street traders
- operate near public places
- deal in a variety of goods
- deal in low priced products of common use
4.very popular
cheap jacks
they display their goods in hired shops or in tents for a temporary period in different localities
main features of cheap jacks
- hire small shops or display in tents in residential colonies
- shift from locality to locality depending upon the prospects of business
- they deal in low priced, household articles
- remain in one locality for a temporary period only
fixed shop retailers
the retailers having a fixed place of sale are known as fixed shop retailers.
two type of fixed shop retailers
- small scale
- large scale
type of small scale fixed retail shops
- general stores
2.single line stores - street shops
- second-hand goods shop
- seconds shop
general stores
general stores are small shops located in residential areas
main features of general stores
- deals in items of daily use
2.have a large variety run each line of products - provide freee home delivery, credit facility and other services
- create personal relationship with customers
- general stores located in posh areas also keep popular brands of product
single line stores
single line stores are small shops which deal with one line of product
main features of single line stores
- deal with one line of products
- deal in a variety of goods in that line of product
- generally situated in market places
- provide customer service
- generally cater to the require my of a particular category of customers
street shops
these shops are situated at street crossing or main road or on corners of colonies
features of street shops
- temporary platforms
2.limited space - a wide variety of low priced articles
- retailers display their Goods on tables
second hand goods shop
these shops deal;s with second hand or used articles
features of second hand goods shop
- sell used goods
- low price
- mostly for poor people
- goods are brought from public and private auction.
seconds shop
these are the shops to sell goods which are not produced according to the required specifications
features of seconds shops
- sold at a heavily discounted price
- goods have manufacturing defects
3.new defective goods
4.price of goods depend on defects
large scale fixed retail shop
large scale retailers deal in a large stock of goods and purchase goods in bulk
features of large scale fixed retail shop
- huge investment
2.large showroom
3.located in central place
4.large numbers of customers
two types of large scale fixed retail shop
- department
- multiple / chain stores
departmental store
a departmental store s a large retail showroom having a number of departments under one roof, each department specialising inn one line of product.
main features of departmental stores
- large size
- wide range
- departmentally organised
- central purchases
- central location
6.services
7.elimination of middleman - advertising
multiple stores
multiple shop refers to a number of identical retail shops located in different parts of the city
features of multiple stores
- large size
- specialised in one line
- centralised purchasing
4.decentralised sale
5.quality
6.elimination of middlemen - uniformly price
- cash sales
GST
GST is a tax on supply of goods and services.
